Financing Mechanisms

ECOTRUST Endowment Fund

ECOTRUST is launching an Endowment Fund out of which sustained funding to environment activities will be provided. It is expected that once established, the endowment fund will become an important part of ECOTRUST’s operations by providing a financial foundation to give ECOTRUST added stability, a greater degree of independence and enhanced ability to achieve its mission.

Payment for Environmental Services:

ECOTRUST has established a number of financing mechanism based on the principles of Payment for Environmental Services.

Trees for Global Benefits

Through TGB, ECOTRUST mobilises financial support for farmers who adopt improved management practices by them to the voluntary carbon market using the Plan Vivo System. To date, TGB has mobilized close to 4.5million US Dollars in Foreign Direct Investment for over 3,000 farmers putting more than 4,000ha under improved land management.

ECOTRUST has worked together with TGB farmers to create a Carbon Community Fund from each sale of carbon credit. The fund acts as a self-managed risk fund for the project but also supports development initiatives that generate benefits for the wider community in which the carbon farmers live. The fund is intended to address environmental needs as well as livelihood needs. The fund currently has a capital base of about US$100,000 and has capacity to mobilise about US$50,000 annually.

ThePESFacility

Borrowing from lessons learned from the carbon bank, the UNDP Uganda office has provided funding for the creation and capitalization of a PES (Payment for Environmental Services) facility that will fuel Ecosystem – Based Adaptation. The facility will support smallholder s who are actively engaged in managing and protecting ecosystems, while at the same time investing in opportunities that improve their own adaptation to climate change.

The Carbon Bank

With funding from UNDP Regional Office, ECOTRUST has established a carbon bank modelled as a revolving fund to reduce unsustainable exploitation of forest resources and the decline of ecosystem quality, while diversifying and increasing incomes for rural farm families. The Bank provides funds to farmers who generate carbon credits, which are sold on the voluntary market to generate sustainable income, recapitalize itself and expand farmer participation in the program.

Grants management: Giving the Donor Value for Money

ECOTRUST has established itself as the number one indigenous grant-making institution, offering Donors a wholesome cost effective package in designing and implementing grants programmes for natural resource management. ECOTRUST existing grassroots infrastructure provides a cost effective and transparent process that supports the identification of grantees, capacity building, due diligence, funds disbursement, reporting, monitoring and has managed a range of grants from small grants of about US$50,000 to large grants of over 10 Million US Dollars. Its grants infrastructure provides donors with an opportunity to negotiate terms and conditions that are mutually beneficial.

Green Heart for the Community

In ECOTRUST private sector has a sound partner to guide Corporate Social Responsibility investments to include initiatives with environmental and livelihood benefits. Standard Chartered Bank, East African Breweries and Geolodges Uganda are our valued pioneers in this conservation drive.